A multitude of luxury hotel properties are under development in Morocco, signalling the start of a new era for the hospitality industry in the country. But some experts believe the market will struggle to absorb the supply, as too many high-end properties become concentrated in one area
Morocco has emerged as one of major areas for hotel development in 2009, with international operators such as Anantara Hotels & Resorts and The Rezidor Hotel Group announcing plans for multiple properties in the country.
Anantara has announced plans for Anantara Marrakech Resort & Spa and Anantara Mogador Resort & Spa in conjunction with Moroccan-based hospitality company H Partners. Both will be luxury resorts designed around Anantara’s villa concept and are due to open in 2011.
Minor International senior vice president development Michel van der Hoeven said: “Three years ago we identified Morocco as one of the key markets to build Anantara resorts. The Anantara brand has a lot of focus on local culture and heritage and Morocco is a key destination where the brand would fit.
“H Partners was one of the partners we were keen to attract and we came together and saw we had the same vision on how to build a resort,” he explained.
“We are looking at additional opportunities with them; they are one of our key partners in Morocco and hopefully we can grow with them. Hopefully, the next opportunity might be in Fez.”
One of the reasons behind Morocco’s appeal to international hotel operators is its geographic location.
“Morocco has potential because of its proximity to Europe; it will be a short-haul, high-end resort destination that is quite well known in Europe ,” said van der Hoeven.
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According to Euromonitor International, the majority of inbound tourists to Morocco do indeed come from Europe; in 2007, 60% of visitors came from France and Spain.
Van der Hoeven added: I think Marrakech as a destination is very sexy; it’s well established in Europe, it’s quite an aspiring destination and the accommodation currently is okay but nothing compared to what we’re used to in Dubai or South East Asia.
“So you have a destination that was aspiring but not really the accommodation to fit that destination profile, and that’s now changing,” he added.
Word of caution
However, The Rezidor Hotel Group senior director business development Romain Avril, who is responsible for the development of three Radisson Blu hotels in Morocco, warned that the recent boom in terms of luxury hotel supply could present future challenges for operators.
“Morocco has seen a tremendous boom in terms of hotel supply. The market will have a challenge in absorbing the supply and there will be a drop in occupancy and rates, because they have been launching too many hotel rooms in a short period, so they will need some time to absorb it,” said Avril, who has seven years’ experience in the marketplace following a previous role with tour operator Thomas Cook.
“Take a city like Marrakech and the hotel pipeline there; I think there are too many hotels coming into the luxury segment,” observed Avril
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